Under the original terms of the deal, AB InBev had an option to buy the U.S. rights for all Modelo brands after 10 years. AB InBev had previously said it would sell Modelo’s half stake in [beer importer and distributor] Crown to Constellation, but regulators said the arrangement wasn’t satisfactory because Constellation would still rely on AB InBev for its beer supply.

Anheuser-Busch’s stock is up 6%.

Another big gainer this morning is HJ Heinz (HNZ), rising 19.9% after Berkshire Hathaway and 3G Capital agreed to buy the packaged-food maker for $72.50 a share. The deal has had a positive effect on some of Heinz’s rivals who could also be acquisition targets: Post Holdings (POST) and Campbell Soup (CPB) are up about 3% while General Mills (GIS) is up about 2.3%.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.